Take advantage of high APYs while you still can. CD rates today, November 22, 2024
- Today’s best CDs offer APYs up to 4.75%.
- APYs have been declining following the Fed’s rate cuts.
- If you open a CD now, you can lock in a high APY and protect your earnings from further interest rate cuts.
If you’ve been thinking about opening a CD, now’s the time to take action.
Annual percentage rates, or APYs, have been falling since the Federal Reserve cut rates at the last two meetings. And now that another rate cut is on the table for December, they are likely to fall even further. You can still earn up to 4.75% APY with today’s top CDs, but the sooner you open one of the top CDs below, the greater your earning potential could be.
Here are some of today’s highest CD rates and how much you can earn by depositing $5,000 now:
Today’s best CD rates
| Term | Highest APY* | Bank | Estimated income |
|---|---|---|---|
| 6 months | 4.75% | Bread saving; Community-wide federal credit union | $117.37 |
| 1 year | 4.50% | Community-wide federal credit union | $225.00 |
| 3 years | 4.15% | America First Credit Union | $648.69 |
| 5 years | 4.25% | America First Credit Union | $1,156.73 |
Experts recommend comparing rates before opening a CD account to get the best APY possible. Enter your details below to get the best CNET affiliate rates for your region.
Why are CD rates falling?
The Fed’s actions play a large role in how banks set their CD rates. The Federal Funds Rate determines how much it costs banks to borrow and lend money to each other. When the Fed raises this rate, banks tend to increase their APYs on consumer products such as CDs and savings accounts to attract new customers and increase their cash reserves. When interest rates are cut, banks tend to lower their APYs.
CD rates have skyrocketed in recent years as the Fed raised the federal funds rate 11 times starting in March 2022 to combat record inflation. At one point, the APYs for the CDs we track at CNET reached 5.65%.
As inflation showed signs of cooling, the Fed began suspending interest rates from September 2023. CD rates remained stable and then began to decline slightly as banks expected rates to be cut later this year. When this rate cut became a reality in September, APYs began to decline more rapidly – a trend that has continued since the Fed cut rates again in November.
Here were the CD rates at the beginning of this week compared to the beginning of last week:
How CD rates have changed in the past week
| Term | Last week’s CNET average APY | This week’s CNET average APY | Weekly change** |
|---|---|---|---|
| 6 months | 4.20% | 4.21% | $0.00 |
| 1 year | 4.10% | 4.09% | -0.24% |
| 3 years | 3.55% | 3.55% | No change |
| 5 years | 3.47% | 3.48% | $0.00 |
There’s still time to lock in a high APY
After the Fed’s rate cuts at the last two meetings, experts expected a third cut in December. But the latest consumer price index report showed that inflation, which had been cooling for months, rose 2.6% in October. That means the Fed could choose to pause interest rates at its next meeting.
“Based on recent inflation data, I don’t expect the Federal Reserve to cut rates again in December,” said Faron Daugs, CFP, founder and CEO of Harrison Wallace Financial Group. “It is likely that they will wait for additional confirmation that inflation is under control before making further adjustments.”
This is good news for savers who want to take advantage of high APYs while they still exist.
What to look for with a CD
A competitive APY is important when comparing CD accounts, but it’s not the only thing you should look at. Also consider the following to find the right account for you:
- When you need your money: Early withdrawal penalties can eat into your interest income. So make sure you choose a term that fits your savings timeline. Alternatively, you can select a no-penalty CD, although the APY may not be as high as a traditional CD with the same term.
- Minimum deposit requirement: Some CDs require a minimum amount to open an account – typically $500 to $1,000. Others don’t. How much money you need to put aside can help you narrow down your options.
- Costs: Maintenance and other costs can negatively impact your income. Many online banks do not charge fees because they have lower overhead costs than banks with physical branches. However, read the fine print of any account you evaluate.
- Federal deposit insurance: Make sure any bank or credit union you are considering is a member of the FDIC or NCUA so your money is protected if the bank goes bankrupt.
- Customer ratings and reviews: Visit sites like Trustpilot to see what customers are saying about the bank. You want a bank that is responsive, professional and easy to work with.
Methodology
CNET rates CD rates based on the latest APY information from publisher websites. We evaluated the CD rates of more than 50 banks, credit unions and financial companies. We rate CDs based on APYs, product offerings, accessibility, and customer service.
Current banks included in CNET’s weekly CD averages include Alliant Credit Union, Ally Bank, American Express National Bank, Barclays, Bask Bank, Bread Savings, Capital One, CFG Bank, CIT, Fulbright, Marcus by Goldman Sachs, MYSB Direct, Quontic, Rising Bank, Synchrony, EverBank, Popular Bank, First Internet Bank of Indiana, America First Federal Credit Union, CommunityWide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America and Connexus Credit Union.
*APYs as of November 21, 2024, based on the banks we track at CNET. Earnings are based on APYs and assume interest increases annually.
**Weekly percentage increase/decrease from November 11, 2024 to November 18, 2024.
